Travel and hospitality is a huge industry, estimated
at $955.9
billion in 2025, according to our research. It is also one that’s changing
rapidly, with online travel bookings projected to account for 75% of all revenue
by 2029. That’s why we’ve put together industry insights in our e-book,
Decoding Online Shopping: Travel and Hospitality Consumer Trends for 2025.
What is clear from our research is that Gen
Z is quickly reshaping the online travel journey. They are doing things
differently than previous generations, from where they find inspiration to why
they abandon a cart and how they view personalization. And that has big
implications for travel brands.
Google Flights/Hotels and social media are
now their go-to
A majority of Gen
Z say they now start their search for travel options on Google Flights/Hotels
(52%) or social media (50%). This shows a major shift from all other
generations, who prefer to start their online search on a search engine or an
aggregated travel site like Booking.com.
These results indicate that social media
will, if anything, be an even more crucial battleground for travel brands going
forward. To grab Gen Z’s attention, you’ll need to budget for targeted social
media ads. Influencer content also plays an important role here, not only in
making Gen Z aware of potential travel options but in providing social proof of
existing ones.
Location
still leads, but reviews and visuals are more important
One thing
that hasn’t changed for Gen Z when booking accommodation and transportation
options online is the importance of location. Proximity to key destinations is
still the most influential factor in convincing Gen Z to book, as it is with
other generations.
What does
change for Gen Z is their even greater reliance on authentic reviews. They want
their travel choices to be validated by their peers, and well-positioned
authentic reviews provide them with the reassurance they need to feel confident
in their decisions. Use A/B testing to determine the ideal placement of
customer reviews on the relevant pages of your website.
Growing
up with digital technology and social media, Gen Z also thrives on visual
content. Having visually engaging, up-to-date images and videos on your website
will appeal to them more than any other generation. This also holds true for
hotel listings on Google Hotels and aggregated travel sites.
Simplify
checkout and increase payment options
The
number one reason that Gen Z leaves a travel website without making a purchase
is that their chosen payment method is not accepted. This again is in sharp
contrast to previous generations, where the top reason for doing so is that
they simply aren’t ready to buy. However, that does suggest that if Gen Z gets
to your website, they’ll be more ready to buy. Adding additional payment
methods, like Apple Pay or Google Pay, will reduce the chances of Gen Z leaving
before they’ve booked.
Gen Z
also says they leave a website if there are too many steps involved in
checkout. Adjusting the checkout process to make it more streamlined will
reduce unnecessary friction and increase the likelihood of Gen Z making a
purchase.
Adapt
with personalization and AI
Above
all, Gen Z wants a seamless digital experience that’s tailored to their needs.
And 65% of Gen Z embrace data-driven personalization as a helpful tool. Once
again, this is a higher number than generations before them. Specifically, Gen
Z wants a website to remember their preferences and offer them real-time
recommendations based on those preferences.
Personalization
gives you a perfect opportunity to build stronger relationships with Gen Z
customers. You can do this by leveraging first-party data to offer tailored
recommendations, simplify the booking process and provide faster checkout.
Gen Z are
also more open than any previous generation to using artificial intelligence (AI)-powered tools, like
chatbots or virtual assistants. Nearly half of Gen Z (49%) say they’ve used an
AI tool when booking travel options and found it helpful. And just 7% of Gen Z
say they’re not interested in AI at all.
Focus on
making AI interactions feel natural, efficient and genuinely helpful. Set clear
expectations about what AI can and can’t do, and ensure human support is easily
accessible if needed.
Examples
of personalization done right
While
there’s no one-size-fits-all when it comes to personalization, some companies
seem to do personalization consistently well.
Netflix
uses personalization to determine customers’ interests and promote related
content and suggestions in real time. This is a perfect example of how
personalization can remove friction by making it easier for customers to find
what they’re looking for.
Stitch
Fix collects information customers supply about their size, shape and personal
style. It then selects outfits based on each one’s taste and personality. This
shows how personalization and AI can work together to offer customers a great
website experience.
LinkedIn
is a great example of a company that knows how to balance privacy concerns with
utility. By providing personalized suggestions and links based on users’
current connections, LinkedIn makes it easier to network, look for work or
catch up with former co-workers.
Conclusion
The
travel and hospitality industry is rapidly evolving, and Gen Z is quickly
reshaping what the online travel journey looks like. Their expectations of what
makes a good digital experience are also greater than ever before. To be
successful, this needs to be seamless and tailored to their needs.
Key to
this is greater personalization powered by data and experimentation. By
optimizing Gen Z’s experience of booking travel options, you can build trust
and loyalty and keep Gen Z travelers coming back for more.
Takeaways
for travel and hospitality brands
- Work on
your social media presence to influence potential customers and increase brand
awareness.
- Showcase
nearby attractions and must-see sites in listings to capture attention.
- Feature
high-quality reviews and images on key pages to build trust and credibility.
- Simplify
checkout and offer more payment options to reduce drop off.
- Personalize
with relevant real-time recommendations for a more tailored digital experience.
- Use AI to
provide instant answers and assist travelers in real time.
Learn more
Find out more about
how digital experience optimization platform AB Tasty can help capture the Gen Z travel market.